ISA, ISA, ISA
Oi, oi, oi!
That looks as though you may have an edge case here where we would have to manually sell down that fraction as it is so small itās likely a small fraction of a penny in value!
Previously it would flag that the trade was too small (below 10p limit). Not sure if thatās still the case since the update.
Had a few of these myself I just bought an extra 10ps worth then sold the remaining fraction.
Thanks again for your response.
Appreciate you looking into it for me and as I said, Iām not currently looking to sell anyway, just something I came across while browsing this morning and couldnāt find an answer to anywhere.
Fingers crossed that the legislation comes in soon so I can buy more (fractional) anyway.
Thanks again, have a nice day.
Hi,
So yeah Ā£170 then a fee of Ā£1 and the 15% has already been deducted in the background or has that yet to come off, from youāre message it sounds like itās already done in the background. It is a usa stock I knew about uk stocks etc just I donāt deal much with doller stocks and the selling process.
Yes the exange rate I guess everyone waits until itās in there favour on a downturn to sell unless itās some emergency etc.
Lucky my sales arenāt big enough to care for gains etc yet but I do have an isa and standard plan so for now I donāt have to care about this.
Thanks though for replying
Thanks for the repliy I have a isa and standard account. I knew about the capital gains part for the UK side I guess the USA works in much the same way but who knows if you csn vlam any fees back on a tax form? But again I have an isa so I donāt have to worry for now until the gov screws it up.
Thanks again
I just sold my only fractional share today just to equal it out.
15% tax is only on dividends.
fx fee is on purchase and sale of stock (rate depending on FT tier)
Ahh sweet the companies I have donāt do divs anyways so thatās decent. Thanks for the repliy
I have a question. Perhaps a silly question, and if it is, I apologize for that, but I would like to know how you plan to invest when your invested amount exceeds the Ā£85,000 guaranteed by the FSCS scheme. I have researched, and there is advice to seek help from a financial advisor (no surprise), but I would like to read what others have in mind.
No such thing as a silly question so donāt apologise for that, but my understanding is that the Ā£85k guarantee is only for cash. So whether your investment is under or over that makes no difference.
@1anrs is spot on. The Ā£85,000 protection is for cash only. All your stocks are yours as a beneficial owner in a separate ānomineeā company. Theyāre held completely separately from the rest of the business - as are client funds.
Thank you both for the prompt reply.
So basically, you keep your stocks (which you would likely transfer to another broker) and recover the cash value of up to 85k through the FSCS scheme?
If youāre sitting on cash
Yesā¦Iām referring to the situation where you have both stocks and funds in your account.
With a further assumption that Freetrade has managed to commit fraud with a regulator spotting it. Your funds are also kept in a separate account that Freetrade canāt access for its own uses.
The Ā£85k protection is for cash in your account that have been misappropriated by Freetrade.
Banks are different as they actively use clientsā funds to generate income and pay you interest.
This isnāt quite true.
FSCS may cover other mismanagement or other fees as well as cash.
For example, they may cover mis selling of advice (freetrade doesnāt offer an advice service so this doesnāt apply);
they may cover missing assets for example if there was some issue with how assets were held or were lost somehow (unlikely);
They may cover administrative fees accrued during the administration of a failed broker.
FSCS have in the past covered some of these kind of scenarios. But itās also important to remember itās a compensation scheme, not a guarantee.
They obviously donāt cover your own bad investment choices.
@RGol see above.
The ring fencing of assets as others have mentioned is the main protection of your investments. I donāt really care about the 85k when it comes to my investments. Itās good to have for the remote risk a broker goes under and you may be able to claim back any cash or fees from administration, but itās more important to know where and who is the custodian of your assets.
Thank you for the clarification.